Contributing Firms:
The Irish Tax Monitor December 2022
This Month's Roundtable

The Questions

Question: Territorial Corporation Tax System : The Minister for Finance in the 2023 Budget speech signalled ‘serious consideration of the options for a move towards a territorial tax system’. Last month’s edition of the Tax Monitor referenced some of the advantages to the Irish corporation tax system of such a change. On a broad front, what might the overall benefits include?

Question: EU Corporation Tax Consultation : The European Commission launched a public consultation on Business in Europe: Framework for Income Taxation (BEFIT). What are the similarities between this and previous initiatives in the area, such as CCCTB?

Question: BEPS & Insurance : What are key BEPS considerations for Ireland’s international insurance industry, for example considerations for life insurers selling cross border?

Question: Stamp Duty : Recent stamp duty changes have changed the rules for electronic transfers of shares, bringing previously unstampable transfers into scope. In this light how do stamp duty rates on shares in Ireland compare with the UK and other competing jurisdictions? Is there a case for bringing them in line with other exchanges to promote, e.g. Euronext Dublin?

Question: Foreign Exchange: The Finance Bill sets out changes in the treatment of foreign exchange gains and losses for corporate tax purposes. Can you outline the proposed changes and their implications for taxpayers??

Question: Remote work across borders: There are a number of challenges the rise of cross-border remote working poses to the international taxation system, particularly around income tax (with such employees faced with double taxation on their income) and corporation tax. Amongst its suggestions on combatting the challenges in this area the European Economic and Social Committee (https://www.eesc.europa.eu/en/our-work/opinions-information-reports/opinions/taxation-cross-border-teleworkers-and-their-employers) suggested the creation of ‘a one-stop shop’ similar to the EU’s system in the area of VAT. Can you comment of the EESC’s suggestions to improve this area of taxation and how the ‘one-stop shop’ solution could work to improve the tax outcomes of cross-border remote work in the EU?

Question: Wildcard: : Optional ‘Wildcard’ Question


This Month's Roundtable - The Answers

Territorial Tax benefits; The EU’s latest push for CT harmonisation; Stamp Duty changes

In this issue the roundtable panel analyse the benefits of Ireland making the switch to a territorial system of corporate taxation, a move currently under consideration by the Irish Government. The EU’s latest effort to harmonise corporate taxation standards across the bloc, BEFIT, is another topic discussed, with this new project having many similarities to previous efforts in the area. The key BEPS considerations for Ireland’s international insurance industry also features, as do the latest developments around share stamp duties, foreign exchange and cross-border remote work.

In This Month's Issue

Making it simple will reap investment benefits

The Government’s consideration of a move towards a territorial tax system is an opportunity to both simplify Ireland’s tax regime and make Ireland more attractive for international investors, opine panellists in this month’s roundtable. While a change to stamp duty on Irish shares is also identified as having the potential to make investment, both inward and outward, more attractive, at a time when the calculus behind such decisions is uncertain as a result of changes to the international tax framework.


Analysis - Special Feature

BEPS: progress towards implementation, but blocking points remain

There has been significant progress made so far in implementing BEPS, especially around the development of technical rules for the OECD’s Two Pillar solution, writes Deloitte’s Naoimh Mallon but blocking points remain, notably at the EU level. She analyses the technical and political progress to date, the major sticking points and a move by the IASB to smooth the transition around deferred taxes rules.